After I finish the taxes, the software finds one error... that Mortgage Int/point should be listed.
Up to this point of error, I owe federal taxes for 2000.
A bit of back ground. in my 1098 deductions, i have three items.
1. Original mortgage. 340000
2. Home equity 225000
3. Refinance mortgage 690000
For " Does you interest need to be limited"... "YES" is already marked. If I put 0 on the point (as I have no point for any of the above) my taxes go up to 5500 owed!
Am I right to say that it adds the three mortgages and they add up to 1255000 thus the yes on my "does your mortgage interest need to be limited since above 750000.
However. I had a mortgage for 340000 + Home Eq for 225000.
later in the year, we refinanced both and got a new mortgage for 690000. So overall.. there is one mortgage for 690000. I changed the answer from Yes to No on "does your mortgage interest needs to be limited" since our mortgage is less than 750000 and at no point it has been over 690000.
Am I right to change the answer to NO.
If the total balance does not exceed the balance at any given time, marking no is correct as you are letting the program know you are under the limits and can deduct the full amount of your mortgage interest deduction.
**Mark the post that answers your question by clicking on "Mark as Best Answer"
I bough a home with a $622K loan in 920/18. I refinanced the home with a broker in 9/2019 and loan amount $484K. Broker sold to a lender in 10/2019 with loan amount $482K. This is the original purchase money being refinanced with no money taken out and the loan amounts less each time.
Turbo tax asks if the average loan balance exceeds $750K. I answer no, because it did not. Turbo Tax auto corrects to yes and I cannot get the correct response to save. What am I doing wrong?